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Blog: President Obama Proposes Budget

President
Obama, in his FY2014 Budget Request, aims to prime the economy to the benefit
of all of us. His budget invests in what is necessary for the nation to have a
strong future:

-
Repair
of long-neglected infrastructure including schools, bridges and roads

-
Development
of manufacturing innovation institutes

-
Increase
of nondefense research and development

-
Education
and job training to prepare people in the above areas, including “Preschool for
All”

-
Investment
in clean energy, creating an Energy Security Trust, encouraging states to cut
energy waste, modernizing the energy grid and making permanent the tax credit
for renewable energy production

NETWORK
supports these elements, and applauds the President for making these
improvements while cutting the federal deficit. Many of the proposals
demonstrate a concern for the middle class and low-income families, echoing
NETWORK’s call for a respect of the dignity of work and workers.

At a time
when the Supplementary Nutrition Assistance Program (SNAP) is challenged by the
Farm Bill and in the House budget proposal, NETWORK is extremely supportive of
the President’s holding the line on SNAP funding. This is known to be the most
efficient of government programs, ensuring adequate nutrition to millions of
Americans and providing economic benefit to neighborhoods, as each dollar in
SNAP benefits turns over $1.78 in commerce.

However, as
in any budget, NETWORK raises attention to significant concerns. In an attempt
to compromise with House opponents, the President has included use of the
“Chained CPI” a formula which changes the way federal benefits and certain provisions of the tax
code are adjusted for inflation. Over time, this would, in effect, reduce
benefits to recipients of Social Security and various veterans’ benefits. The
longer a person receives benefits, the greater the reduction. The President
refers to protections for the most elderly, and for those with the greatest need.
Details of this are yet to be seen.

The
President also suggests increasing Medicare premiums for the wealthiest in the
nation. NETWORK is concerned for the future impacts means-testing could have on
future Medicare support in Congress. NETWORK does, however, laud contracting
for better prices on pharmaceuticals for Medicare.

NETWORK also
has mixed reaction to the tax proposals in the President’s budget. We are very
grateful for the retention of the ARRA improvements to the Child Tax Credit
(CTC), the Earned Income Tax Credit(EITC). We support making permanent the
American Opportunity Tax Credit, the CTC and EITC.

We laud the
President for including the Buffett Rule, requiring households with incomes
over $1 million to pay more in taxes, and for closing many loopholes by which
those with the greatest wealth are eluding portions of their dues to society.

However, it
is unfortunate that savings from this is used to lower corporate tax rates
rather than for supporting the many unmet needs of the nation.

Finally,
President Obama calls for a raise in the minimum wage to $9/hour – one step
closer to achieving a living wage. These changes will make it easier for workers
to be rewarded for their effort by having a decent life for themselves and
their families. The President’s budget proposal indicates a shift towards
greater concern for the middle class and working families.

The changes
proposed in President Obama’s FY 2014 budget are a step in the right direction
for lessening the economic disparity between the wealthy few and average
Americans. NETWORK applauds these efforts to promote meaningful work and to
ensure that Americans can invest in their families’ future.

Further
study of the FY2014 budget will be reflected as implications are recognized.